AMD closes fabs, cuts 2,300 jobs

Everybody's feeling the heat of the recession lately, and AMD has had to cut back, as they announced today:

SUNNYVALE, CA - SEPTEMBER 25, 2001 - AMD today announced it is
accelerating key components of its strategy to reduce costs and enhance the
financial performance of its core businesses. The company will close Fabs
14 and 15, two semiconductor wafer fabrication facilities (fabs) in Austin,
Texas that primarily serve AMD's foundry operations. AMD will also reduce
and restructure other manufacturing activities as well as administrative
support associated with these facilities.

These changes will result in the reduction of approximately 2,300 positions,
or approximately 15 percent of its worldwide workforce, by the end of the
second quarter of 2002. Approximately 1,000 of these positions are
associated with closing the fabs in Austin. The balance of the reductions
will result from realigning and restructuring back-end activities in Penang,
Malaysia. The company will provide severance packages and outplacement
services to affected employees.

2,300 people is not a small layoff. It ain't airline industry big, but it's nothing to sneeze at. No doubt the recent loss of OEM business from customers like Micron, IBM, and Gateway hurt AMD's prospects for the coming months, as well.

I know the business cycle is a fact of life, but I'm ready for this part of this particular cycle to be over.